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"The VW board has decided to step on the gas to roll out two small cars - one from the VW stable and another from Skoda - over the next 24-30 months. The technology for the cars have been finalised and now product development is underway"- Thomas Kuehl, Skoda Auto India operations head and board member (sales & marketing)

The new Skoda small car has been discussed here before, it is about 24 to 30 months away now. It will be positioned under the Fabia with a price tag of under 4-lakh rupees ($8,000).

The Czech car maker is also setting up its vendor base close to the Aurangabad plant from where the Fabia, Octavia and Laura come out of. A high degree of localization will make the Skoda small car reachable to more customers looking for an economy hatch in India.